Good afternoon and welcome to The ASX Today. Australian shares surged today after a softer-than-expected inflation reading slashed expectations of another rate hike. It sent the benchmark index above the 9,000-point mark for the first time in months.
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The ASX 200 is up 1.3 per cent after reaching an intraday high of 9,086.1, its strongest level since before the Iran conflict began in February. Headline inflation slowed to 3.8 per cent in June, below market forecasts of 4 per cent.
The result prompted traders to almost completely rule out an August rate hike, with the probability falling to just 4 per cent.
Healthcare led today’s rally. CSL jumped 6.6 per cent after announcing plans for clinical trial work to support its next-generation Horizon 2 manufacturing process. ResMed gained 4 per cent and Ramsay Health Care climbed 3.3 per cent.
Consumer stocks also rallied as easing rate concerns lifted sentiment. JB Hi-Fi rose 4.2 per cent, Harvey Norman added 4.8 per cent, Eagers gained 4.4 per cent, while Coles and Woolworths both advanced more than 2 per cent. Energy was firmer as Brent crude rebounded 4.2 per cent to US$87.63 a barrel amid renewed fighting in the Middle East. Viva climbed 3.6 per cent, and Santos added 0.8 per cent.
The banks underperformed the broader market, with Commonwealth Bank slipping 0.1 per cent and Westpac down 0.3 per cent.
In company news, Rio Tinto rallied 4.7 per cent after reporting a 43 per cent increase in underlying first-half earnings, driven by stronger copper production. Mineral Resources climbed 5.3 per cent after delivering a stronger-than-expected June quarter, with improved lithium production and lower costs.
Woodside Energy gained 1.1 per cent after June quarter revenue jumped 35 per cent as the company tightened its full-year production guidance. Meanwhile, Perpetual slipped 1.8 per cent after rejecting a revised takeover proposal from EQT.
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